Navigation:  Deposit Screens > Retirement Screen Group > Retirement Plan Screen > Plan Owner Information tab > Required Minimum Distribution Info field group > RMD Scenarios

The RMD on a retirement plan is calculated based on the account features entered on the Deposits > Retirement > Retirement Plan screen. This help page describes the scenarios that are available for calculation of the RMD.

 

Participant Scenarios -Traditional/Sep/Simple/QRP Plans Only:

 

•Scenario one: Both the Beneficiary and Spouse Exception fields on the Plan Owner Information tab are unchecked.

 

A Joint Life Recalculation is performed using the Uniform Lifetime Distribution Table.  

 

If a date has been entered in the Date of Death field, the Required Minimum Distribution Calc Reporting Report (FPSDR041) will show a warning message - “OWNER DECEASED - NO BENEFICIARY.”

 

•Scenario two: The Beneficiary field is left blank but the Spouse Exception field is marked.

 

The Beneficiaries tab must be set up. GOLDPoint Systems will then display the spouse beneficiary birthdate in the Beneficiary Birthdate field on the Retirement Plan Screen.

 

A Joint Life Recalculation is performed using the participant and spouse beneficiary actual birth dates.

 

 

Beneficiary Scenarios - Any Plan (except education):

 

•Scenario one: The Beneficiary field is marked and the Spouse Exception field is left blank.

 

The value in the Distribution Option field must be 0 or 2. This will cause the single life expectancy calculation to occur. If the Distribution Option field is set to “1,” the 5-year rule applies, and no calculation is performed.

 

If the value in the Distribution Option is 0 or 2, proceed to the following:

 

The Date of Death field must be filled in with the start date of the beneficiary payouts. If the payout begins in the year of the participant’s death, enter the death date of the participant. If the payout starts after the year of death, enter the date the plan is set up. This is used to establish the beneficiary’s age when the death payout began for declining years calculation.

 

Enter the birth date of the beneficiary set up on the plan in the Beneficiary Birthdate field. This field is used in the single life expectancy calculation.

 

A Single Life Declining Years calculation is performed.

 

•Scenario two: Both the Beneficiary and Spouse Exception field are marked.

 

The value in the Distribution Option must be 0 or 2. This will cause the single life expectancy calculation to occur. If the value in the field is 1, the 5-year rule applies and no calculation is performed.

 

If the value in the Distribution Option is 0 or 2, proceed to the following:

 

The Beneficiaries tab must be set up. The Spousal Beneficiary? field must be marked. The spouse beneficiary birth date will appear in the Beneficiary Birthdate field.

 

A Single Life Recalculation is performed.

 

If 1 is used in the Distribution Option field, the following warning will appear on the Required Minimum Distribution Calc Reporting Report (FPSDR041).